I have tried to play with all the numbers in this question, but nothing seems to be working.
Nitrite ion, NO-2 is used as a preservative for bacon and other foods. It has been the center of controversy since it is potentially carcinogenic.
Here is an abbreviated procedure for the determination:
Step 1: 50.0 mL of unknown solution containing nitrite is added to 1.00 mL of sulfanic acid solution.
Step 2: After 10 min, 2.00 mL of 1-aminonaphthalene solution and 1.00 mL of buffer are added.
Step 3: After 15 min, the absorbance is read at 520 nm in a 5.00 cm cell.
The following solutions are analyzed:
A. 50.0 mL of food extract known to contain no nitrite (i.e a negligible amount); final absorbance =0.153
B 50.0 mL of food extract suspected of containing nitrite; final absorbance =0.622
C. Same as B, but with 10.0 mL of 7.50 x 10^-3 M NaNO2 added to the 50.0 mL sample; final absorbance =0.967
a) Calculate the molar absorptivity of the colored product. Remember that the cell is 5.00 cm.
b) How many micrograms of NO-2 were present in 50.0 ml of food extract.
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Calculate: Absorption and Variable Costing
Far North Telecom, Ltd., of Ontario has organized a new division to manufacture and sell specialty cellular telephones. The division's monthly costs are shown below.
Variable Cost per Unit:
Direct materials: $48
Variable manufacturing overhead: $2
Fixed manufacturing overhead costs (total): $360,000
Selling and administrative costs
Variable 12% of sales
Fixed (total): $470,00
Far North Telecom regards all of its workers as full-time employees and the company has a long-standing no layoff policy. Furthermore, production is highly automated. Accordingly, the company includes its labor costs in its fixed manufacturing overhead. The cellular phones sell for $150 each. During September, the first month of operations, the following activity was recorded:
Units produced: 12,000
1. Compute the unit production cost under:
a. absorption costing
b. variable costing
2. Prepare an income statement for September using absorption costing.
3. Prepare an income statement for September using variable costing.
4. Assume that the company must obtain additional financing in order to continue operations. As a member of top management, would you prefer to rely on the statement in (2) above or on (3) above when meeting with a group of prospective investors?
5. Reconcile the absorption costing and variable costing net operating income figures in (2) and (3) above.